Smith Douglas Homes Corp. (NYSE: SDHC) has reported its third quarter results for the three and nine months ended September 30, 2025, and the figures show some significant changes compared to the same period in 2024.
The key metrics for the third quarter of 2025 compared to the third quarter of 2024 are as follows:
- Home closings decreased by 3% to 788.
- Home closing revenue decreased by 6% to $262.0 million.
- Home closing gross margin was 21.0% compared to 26.5%.
- Net new home orders increased by 15.0% to 690.
- Pretax income decreased to $17.2 million from $39.6 million.
- Earnings per diluted share decreased to $0.24 from $0.58.
- Debt-to-book capitalization increased to 11.2% from 0.8% at December 31, 2024.
- Active community count increased by 32% to 98 at quarter end.
- Total controlled lots increased by 36% to 24,300.
Greg Bennett, Vice Chairman and Chief Executive Officer of Smith Douglas Homes, commented that the company continued to execute on its long-term goal of becoming a large-scale builder of choice in key markets throughout the South. He noted the progress in establishing the company's presence in newer markets and expanding its homebuilding footprint in existing markets. Bennett also highlighted the company's consistent and disciplined approach to the business and its focus on being asset-light and maintaining efficient construction cycle times.
Russ Devendorf, Executive Vice President and Chief Financial Officer, stated that the company posted pretax income of $17.2 million in the third quarter, with home closing revenue at $262.0 million on 788 home closings and a home closing gross margin averaging 21.0%. He emphasized that these results were in line with the guidance given in the previous quarter, demonstrating the consistency of operations and the reliability of the homebuilding model.
Devendorf also pointed out that the company's net debt-to-net book capitalization stood at 8.4% at the end of the third quarter, while the active community count was up 32% compared to the previous year. He highlighted the combination of financial strength and opportunistic growth, which he believes gives Smith Douglas the ability to achieve its long-term goals of increasing market share while staying financially disciplined.
These figures and comments provide a detailed and specific comparison of the company's performance in the third quarter of 2025 against the same period in 2024. As a result of these announcements, the company's shares have moved -2.41% on the market, and are now trading at a price of $17.41. For more information, read the company's full 8-K submission here.
